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Bill

Bill

S 877

Provides temporary corporation business tax and gross income tax credits for insourcing business to New Jersey.

2026-2027 Regular Session Introduced by Linda Greenstein

S 877 offers temporary corporate and income tax credits to companies that relocate business operations into New Jersey to stimulate job creation and economic growth.

Introduced in the Senate, Referred to Senate Economic Growth Committee
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WeVote Research Nonpartisan
Bill Summary · S 877

Legislative bill overview

S 877 creates temporary tax credits for corporations that move business operations back to New Jersey from out-of-state locations (insourcing). The bill aims to incentivize companies to relocate jobs and business activities to the state by offering reductions in corporation business tax and gross income tax obligations for a limited time period.

Why is this important

Job creation and business relocation are central to state economic development strategy. Tax incentives like these are commonly used by states to compete for business investment, potentially affecting employment rates, tax revenue, and overall economic growth in New Jersey.

Potential points of contention

  • Cost to state budget: Temporary tax credits represent foregone revenue that must be offset elsewhere or absorbed into the budget, requiring analysis of whether the economic gains justify the fiscal impact
  • Definition and verification challenges: Determining what qualifies as "insourcing," measuring actual job creation, and preventing misuse or fraud requires robust administrative mechanisms that add enforcement costs
  • Benefit distribution: Questions about whether incentives primarily benefit large corporations versus small businesses, and whether benefits reach economically disadvantaged communities or concentrate in wealthy areas
  • Temporary nature effectiveness: Critics may argue temporary credits lack sufficient duration to justify long-term business relocation decisions, while supporters contend permanence creates excessive long-term costs

Compiled from official sources — confirm details with the bill’s official record.

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